Basic Accounting Terms

Money borrowed from a bank, financial institution or another source

Items of value that are owned by a business

The investment the owner has made in the business

The relationship between Assets, Liabilities & Owners Equity. Both sides must be equal.

Amounts that a business owes to other people or organisations

A financial event that affects the elements of the accounting equation

Computers, machinery or other items owned by the business that are used in the business

A financial report that shows the balances of all assets, liabilities and owners equity

Items that are bought and sold by a trading business as its main source of revenue

When the owner draws money from the business